The Effect Of Financial Literacy, Overconfidence, And Risk Tolerance On Investment Decision

Abstract

This study aims to test and prove whether financial literacy, overconfidence, and
risk tolerance affect investment decisions. The sample in this study were 100
respondents who met the criteria (namely: living in Sidoarjo, aged 20-24 years,
owning pure gold as an investment instrument, and making purchases/investments
at least once in the last year). This study used multiple linear regression analysis.
As a result, it is known that the variables of financial literacy and overconfidence
have a significant effect on investment decisions. Meanwhile, the risk tolerance
variable has not a significant effect on investment decisions.